ed Trustbuster losing trust

It’s no secret that the Fair Trade Commission (FTC) has wielded far greater power than before, riding on the wave of economic democratization in recent years. But it is feared that the business regulator’s aimless abuse of power is eroding its own authority and weakening corporate activity.

The Supreme Court on Tuesday upheld a lower court ruling nullifying fines that the antitrust agency imposed in 2011 on Hyundai Oilbank and S-Oil for alleged collusion. The top court ruled in favor of the two refiners, citing a lack of substantial evidence to prove that they had colluded. “The FTC imposed the fines after concluding that they avoided competition through collusion. However, it failed to present evidence to support its argument,’’ the highest court said.

Under the ruling, Hyundai and S-Oil will retrieve 75.3 billion won and 43.9 billion won, respectively, from the corporate watchdog. The Supreme Court is due to rule Thursday in a similar case filed by SK Innovation, which would also get back 135.6 billion won if it wins the court battle.

This means that the FTC will need more than 250 billion won to return the fines to the three refiners. But the regulator has only 20 billion won it has collected in fines since the beginning of the year, which could force it to borrow from the government’s budgetary unit.

Critics have rapped the FTC for having been wayward and excessive in slapping fines on businesses without clear evidence of collusion. This has allegedly aggravated the burden on companies while wasting taxpayers’ money.

Earlier this month, the Seoul High Court annulled most of the fine that the FTC imposed on Namyang Dairy in 2013 over allegations that the milk company forced distributors to buy its products in violation of fair trade rules. It’s also nothing new to hear consumer goods makers and builders face fines after complying with administrative guidelines.

In fact, a growing number of companies have been filing lawsuits in protest against the fair trade agency’s corrective measures and fines. The number of such lawsuits remained at 48 in 2010, but the figure shot to 88 in 2012 and 120 last year, although the 2013 number was only 55. According to press reports, the FTC loses one of every four lawsuits.

Uprooting corporate collusion and unfair trade practices is essential, but the FTC’s reckless and coercive use of power could hamper normal corporate activities. Especially worrisome is its tendency to link all business activities to potential crimes.

All this raises the need to mitigate the FTC’s excessive power in certain areas although it’s critical to protect its authority as the “prosecution in the business sector.’’ More importantly, the FTC needs to perform its duty, based on scientific evidence.